Rates

• Texas law requires insurance companies to register their rates with the Department of Insurance. They can change rates without prior approval, but the department can order refunds if it finds them to be excessive. A company cannot change premiums during an active policy---only during renewal.
  
  

Written Explanation

• Insurance carriers---if requested---must provide written reasons for cancellation or denial of homeowner´s insurance. State law prohibits cancellation and denial based on credit score.
  
  

Cancellation

• If a company plans to cancel insurance before it expires, it must provide at least 10 days' written notice, unless the cancellation will occur within two months of staring the policy. In this instance, it must provide at least 30 days. Once two months have passed, a company can only cancel a policy for fraud, increased risk or failing to pay the premium. In any event, the company must refund any payments that did not go towards coverage.
  
  

Non-Renewal

• State law dictates an insurance company must give at least 30 days' notice if it plans not to renew a policy. It reserves the right for nonrenewal in certain instances including, but not limited to, filing three or more weather-related claims in the last 36 months or the owner not fixing deterioration of the home. If an insurance company fails to notify a homeowner about the weather policy after the second claim, it loses the right to deny renewal should the owner file a third within this timeframe.
  
  

Claims

• Companies must investigate claims within 15 days of receipt. If they need more information, they have another 15 days to accept or reject. A company must pay out within five days of accepting a claim. Rejections require written explanation. Some exceptions exist to this, including suspected arson and major natural disasters among others. If a carrier does not pay in the proper time frame and the homeowner seeks legal recourse, the court can order the carrier to pay legal fees plus damages equal to 18 percent of the claim.
  
  

Floods, Windstorms and Hurricanes

• Texas can often play host to some extreme weather that typical policies do not cover. In some instances, a person can purchase separate coverage from certain organizations, while others will have no choice. Texas law does not permit people to purchase windstorm coverage once a hurricane has entered the Gulf of Mexico. Certain residents near the Gulf must purchase flood insurance if they live in a flood zone or have made certain alterations to their house after September 1, 2009, among other things. Consult with a carrier to determine the need for these types of insurance.